Is site consolidation the right move for UK food manufacturing?

This week Greggs announced plans to close four manufacturing sites, putting around 740 roles at risk, even as the business grows towards 3,500 shops.

Before we get into what it means for the industry, our thoughts are with everyone facing an uncertain few months. Behind that number are skilled bakers, engineers, technologists and operations teams, many with years of loyalty and craft behind them. News like this is never just a business story.

But it does raise a big question for UK food and drink, and one we'd love your view on: is site consolidation the right move?

What Greggs has announced

In its third-quarter trading update, Greggs set out proposals to consolidate its manufacturing network over the next two and a half years. The plans are subject to consultation with colleagues and union representatives.

• Sites proposed to close: Enfield in North London, North Lakes near Penrith, Pettigrews in Kelso and Seaham in County Durham.
• Other changes: manufacturing at Treforest in Wales would be affected, though it would stay open as a distribution centre. Product ranges at Clydesmill and Manchester would be reduced, and tinned bread production at Gosforth would end.
• Where production would go: six core sites at Clydesmill, Gosforth, Balliol, Leeds, Manchester and Derby.
• The numbers: around £60m in upfront cash costs, with expected savings of around £20m a year by 2029.

Greggs says the changes are needed to meet future capacity "in the most cost-efficient manner", and that its shops will not be affected at this stage.

A wider trend in food manufacturing

Greggs isn't alone. Across UK food and drink, more businesses are moving towards fewer, larger and more automated sites. Rising energy, labour and ingredient costs are squeezing margins, while investment in modern lines and logistics is easier to justify at scale.

What makes this story stand out is the timing. Greggs is growing, not shrinking. That tells us consolidation is no longer just a response to tough trading. It's becoming a deliberate growth strategy.

The case for consolidation

Supporters see it as smart, future-proof business:

• Lower costs, better value. Running fewer sites cuts overheads, which can help keep prices down for customers.
• Investment where it counts. Concentrating production makes it easier to fund modern equipment, automation and energy-efficient facilities.
• Consistency and control. Fewer sites can mean more consistent quality, simpler planning and tighter technical standards.
• Capacity for growth. Bigger, better-equipped sites can scale up as demand grows.

The case against

Others worry about what gets lost along the way:

• Local skills. Experienced teams can't always relocate, and hard-won knowledge can walk out of the door with them.
• Community jobs. Factories are often major employers in their towns, so a closure is felt well beyond the site gates.
• Supply chain resilience. Fewer sites means more eggs in fewer baskets. A breakdown, fire or flood at one site has a bigger knock-on effect.
• Longer journeys. Centralised production can mean more miles between factory and shop.

What it means for talent

From where we sit, consolidation reshapes the talent market in two ways.

First, experienced people come to market. Bakers, engineers, technologists, planners and operations leaders with real food manufacturing experience are exactly the people many businesses struggle to find. Their skills don't disappear when a site closes.

Second, the sites that remain need different skills. Larger, more automated facilities lean heavily on multiskilled engineers, continuous improvement specialists, technical teams and strong site leadership. For employers, getting the right people in place is what turns a consolidation plan into a success.

After 30 years recruiting in food and drink, we know that the best people in the market aren't always the ones on the market. Moments like this are when good relationships matter most.

Where do you stand?

Is consolidation the future of food manufacturing, or are we putting too many eggs in fewer baskets? We'd love to hear your view. Join the conversation on our LinkedIn page.

If you're affected by changes like these, please get in touch. Your experience is valued across our industry, and we're always here for a confidential, no-pressure chat about what's next.

If you're an employer planning for growth or change, we'd be happy to talk about the skills you'll need and where to find them.

Call us on 07826 916595, email mail@theovalpartnership.co.uk or browse our latest vacancies.

Sources

• Bakery Info: Greggs to cut over 700 jobs as part of manufacturing site consolidation